The US and Iran have reached an interim agreement to reopen the Strait of Hormuz, triggering a decline in oil prices and an improvement in risk sentiment for Asian currencies. While details of the deal remain pending, the outlook for currencies like the KRW is improving as regional tensions ease.
Key Takeaways
- 1.The US and Iran reached an interim agreement to reopen the Strait of Hormuz.
- 2.Brent oil prices fell to US$84/bbl and risk assets gained following the announcement.
- 3.MUFG forecasts USD/KRW moving to 1400 and expects the Bank of Korea to hike rates twice this year.
Table of Contents
- Market Highlights
- Ahead Today
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Authors
Michael Wan
Securities
USDKRWBrent Crude Oil
Themes
Geopolitical De-escalationAsia FX Recovery
Regions
Asia PacificUnited StatesIranIndia